If you read my post, you should insert it into /etc/network/interfaces, not execute it..

bit rate = 1mb/s is way too slow, when my laptop has only 1mb/s, network isn't working at all.
Maybe should should get closer to your AP.
"Encryption key off": You said you were using WEP?
 After dhclient post output of ifconfig.
If the network is still unreachable, try "ifconfig wlan0 inet 192.168.0.40"
You'll have no DNS but "ping 192.168.178.0.1" should work.
You can insert
auto wlan0
iface wlan0 inet dhcpinto /etc/network/interfaces.

kernel linux/zImage.tns
cmdline root=/dev/sda1 earlyprintk debug console=tty0 rootdelay=10
boot

Wow..
Wait a moment, I gonna test it.

Edit: It works flawlessly.

No. wpa_supplicant is a binary you have to compile. For now it would be easier for us to use WEP instead.

Edit: Oh, I was wrong, wpa_supplicant is, indeed, available. I don't know how to use it, but you'll find a lot of infos in the web. (Or use WEP)

That's only a symptom..
My next guess would be: Are you using WPA?
It's not supported directly by the kernel, only through wpa_supplicant.
So try to use WEP or no encryption at all to test it.

The login text is displayed by the rootfs.
And I'm too lazy to change the version number every 10 minutes..

I did not choosed any format. What should I specify in order to generate an initrd that the kernel will launch like you managed to do today?

Tangrs used the ext2 image format as initrd.
At least "file initrd.img" says so.
BTW: I couldn't get it to run, but that may be because it's too large to be decompressed (27MB).
I was too busy to solve the problem with the framebuffer, so I couldn't build a new (smaller) rootfs.

(even if the framebuffer doesn't work)

I don't think the initrd and framebuffer problem are related..
I could really have tested the wrong kernel the whole time *embarrassed*